YONGHUI SUPERSTORES(SH:601933) Sou Hu Cai Jing·2025-12-05 07:05Core Insights - In 2024, the Chinese retail industry witnessed a significant decline as 62 major supermarket chains collectively closed 3,037 stores, averaging 9 closures per day, indicating a severe contraction in the sector [1][3] - The downfall of traditional supermarkets is attributed not only to e-commerce competition but also to systemic failures in their operational models, leading to inefficiencies and customer dissatisfaction [3][5] Group 1: Store Closures and Financial Impact - Major supermarket chains like Century Hualian closed 1,009 stores, nearly halving their presence; CR Vanguard reduced its store count by 493; Yonghui Supermarket closed a quarter of its locations, with revenue plummeting from 48.7 billion yuan to 29.9 billion yuan [1][3] - The closures reflect a broader trend of traditional supermarkets struggling to adapt, with many failing to innovate or improve their service offerings [5][6] Group 2: Operational Inefficiencies - Traditional supermarkets have become "bloated," with large store formats leading to inefficiencies, such as long customer search times and a high percentage of slow-moving inventory [3][5] - New retail formats, like hard discount stores, have outperformed traditional supermarkets by focusing on a limited selection of high-demand products, achieving three times the turnover speed and significantly higher space efficiency [3][5] Group 3: Customer Experience and Service - Traditional supermarkets are trapped in a "no-differentiation trap," offering similar products and prices without superior service, leading to customer disengagement [5][6] - Successful retailers like Pang Donglai and Sam's Club have differentiated themselves through unique customer experiences and specialized offerings, highlighting the importance of service quality in attracting consumers [5][6] Group 4: Future of Retail - The closures signal a shift in the retail landscape, emphasizing that success will depend on supply chain efficiency, product differentiation, and enhanced customer service rather than sheer store count [6] - The future of supermarkets is envisioned as smaller, community-focused stores that offer convenience and specialized products, moving away from the outdated "big and all-encompassing" model [6]